Swiss banking giant UBS has launched an innovative money market fund utilizing Ethereum technology, marking a significant step forward in the tokenized asset domain. This new initiative merges blockchain capabilities with traditional asset management, featuring a pilot fund structured as a Variable Capital Company (VCC) in Singapore. The objective is to enhance accessibility and efficiency by leveraging blockchain’s ability to fractionalize assets and reduce operational costs, thus making investments more reachable to a wider audience.
The pilot program, conducted under Singapore’s Project Guardian regulatory framework, allows UBS to test and refine the processes for tokenized fund transactions, including subscriptions and redemptions, which are carried out on the Ethereum blockchain using smart contracts. This setup aims to boost transparency and traceability in transactions. UBS’s own blockchain infrastructure, UBS Tokenize, facilitates these operations, underscoring the bank’s commitment to incorporating digital assets into its core services. The Monetary Authority of Singapore leads Project Guardian, which supports these regulatory-compliant trials and highlights the potential of tokenized assets within controlled environments.
